BBC responds to ContractorUK news story on IR35

The BBC has responded to ContractorUK’s coverage of a statement that the broadcaster put out implying accountants were to blame for not adequately advising its presenters about IR35.

Although the BBC yesterday reiterated that “individuals with a PSC usually engage an accountant and…. their accountant should have been advising them on” IR35, a BBC spokesman acknowledged that the issue was “complex”.

“If we engage someone through a PSC on a freelance basis, they usually get a higher gross fee (with no tax and NIC deductions)”.

'Commercial risk'

This higher gross fee is to “reflect that they take the commercial risk of being freelance, assume responsibility for ensuring they pay the correct amount of tax and NI, and do not receive the enhanced pension and other benefits they would receive as a staff member”.

The BBC spokesman also said that the corporation had annually notified HMRC of how much it paid PSCs which it engaged, including “individuals associated with them.”